Intrinsic value of Noble Energy Inc. - NBL

Previous Close

$22.74

  Intrinsic Value

$4.82

stock screener

  Rating & Target

str. sell

-79%

Previous close

$22.74

 
Intrinsic value

$4.82

 
Up/down potential

-79%

 
Rating

str. sell

We calculate the intrinsic value of NBL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 11.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  5,086
  5,203
  5,336
  5,487
  5,653
  5,835
  6,034
  6,249
  6,481
  6,730
  6,996
  7,280
  7,582
  7,903
  8,244
  8,606
  8,988
  9,392
  9,820
  10,271
  10,747
  11,249
  11,778
  12,336
  12,923
  13,541
  14,192
  14,877
  15,598
  16,355
Variable operating expenses, $m
  7,628
  7,804
  8,004
  8,229
  8,478
  8,751
  9,049
  9,371
  9,718
  10,091
  10,478
  10,903
  11,356
  11,838
  12,348
  12,889
  13,462
  14,068
  14,708
  15,384
  16,097
  16,849
  17,641
  18,477
  19,356
  20,282
  21,257
  22,283
  23,362
  24,497
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  7,628
  7,804
  8,004
  8,229
  8,478
  8,751
  9,049
  9,371
  9,718
  10,091
  10,478
  10,903
  11,356
  11,838
  12,348
  12,889
  13,462
  14,068
  14,708
  15,384
  16,097
  16,849
  17,641
  18,477
  19,356
  20,282
  21,257
  22,283
  23,362
  24,497
Operating income, $m
  -2,543
  -2,601
  -2,667
  -2,742
  -2,825
  -2,916
  -3,015
  -3,122
  -3,237
  -3,361
  -3,482
  -3,624
  -3,774
  -3,934
  -4,104
  -4,284
  -4,474
  -4,675
  -4,888
  -5,113
  -5,350
  -5,600
  -5,863
  -6,141
  -6,433
  -6,741
  -7,065
  -7,406
  -7,764
  -8,142
EBITDA, $m
  -606
  -620
  -636
  -654
  -673
  -695
  -719
  -744
  -772
  -802
  -833
  -867
  -903
  -942
  -982
  -1,025
  -1,071
  -1,119
  -1,170
  -1,224
  -1,280
  -1,340
  -1,403
  -1,470
  -1,540
  -1,613
  -1,691
  -1,772
  -1,858
  -1,948
Interest expense (income), $m
  327
  355
  368
  383
  399
  418
  439
  462
  487
  514
  543
  574
  608
  643
  681
  722
  764
  810
  858
  909
  962
  1,019
  1,079
  1,142
  1,208
  1,278
  1,352
  1,430
  1,511
  1,597
  1,688
Earnings before tax, $m
  -2,898
  -2,969
  -3,050
  -3,142
  -3,243
  -3,355
  -3,477
  -3,609
  -3,751
  -3,904
  -4,057
  -4,232
  -4,418
  -4,616
  -4,826
  -5,048
  -5,284
  -5,533
  -5,797
  -6,075
  -6,369
  -6,678
  -7,005
  -7,349
  -7,711
  -8,093
  -8,494
  -8,917
  -9,362
  -9,829
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -2,898
  -2,969
  -3,050
  -3,142
  -3,243
  -3,355
  -3,477
  -3,609
  -3,751
  -3,904
  -4,057
  -4,232
  -4,418
  -4,616
  -4,826
  -5,048
  -5,284
  -5,533
  -5,797
  -6,075
  -6,369
  -6,678
  -7,005
  -7,349
  -7,711
  -8,093
  -8,494
  -8,917
  -9,362
  -9,829

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  21,459
  21,952
  22,516
  23,150
  23,852
  24,622
  25,460
  26,368
  27,346
  28,395
  29,518
  30,716
  31,992
  33,347
  34,786
  36,310
  37,924
  39,630
  41,433
  43,337
  45,346
  47,464
  49,697
  52,050
  54,528
  57,137
  59,883
  62,773
  65,813
  69,010
Adjusted assets (=assets-cash), $m
  21,459
  21,952
  22,516
  23,150
  23,852
  24,622
  25,460
  26,368
  27,346
  28,395
  29,518
  30,716
  31,992
  33,347
  34,786
  36,310
  37,924
  39,630
  41,433
  43,337
  45,346
  47,464
  49,697
  52,050
  54,528
  57,137
  59,883
  62,773
  65,813
  69,010
Revenue / Adjusted assets
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
Average production assets, $m
  18,680
  19,109
  19,601
  20,152
  20,763
  21,433
  22,163
  22,953
  23,805
  24,718
  25,695
  26,738
  27,849
  29,029
  30,281
  31,608
  33,013
  34,498
  36,068
  37,725
  39,474
  41,318
  43,262
  45,310
  47,467
  49,738
  52,128
  54,644
  57,290
  60,074
Working capital, $m
  -707
  -723
  -742
  -763
  -786
  -811
  -839
  -869
  -901
  -935
  -972
  -1,012
  -1,054
  -1,099
  -1,146
  -1,196
  -1,249
  -1,306
  -1,365
  -1,428
  -1,494
  -1,564
  -1,637
  -1,715
  -1,796
  -1,882
  -1,973
  -2,068
  -2,168
  -2,273
Total debt, $m
  6,814
  7,086
  7,397
  7,746
  8,132
  8,557
  9,019
  9,519
  10,058
  10,636
  11,254
  11,915
  12,617
  13,364
  14,157
  14,997
  15,886
  16,826
  17,820
  18,869
  19,976
  21,143
  22,373
  23,670
  25,035
  26,472
  27,986
  29,578
  31,253
  33,015
Total liabilities, $m
  11,824
  12,096
  12,407
  12,756
  13,142
  13,567
  14,029
  14,529
  15,068
  15,646
  16,264
  16,925
  17,627
  18,374
  19,167
  20,007
  20,896
  21,836
  22,830
  23,879
  24,986
  26,153
  27,383
  28,680
  30,045
  31,482
  32,996
  34,588
  36,263
  38,025
Total equity, $m
  9,635
  9,857
  10,110
  10,394
  10,709
  11,055
  11,432
  11,839
  12,278
  12,749
  13,254
  13,792
  14,364
  14,973
  15,619
  16,303
  17,028
  17,794
  18,604
  19,458
  20,360
  21,311
  22,314
  23,370
  24,483
  25,654
  26,887
  28,185
  29,550
  30,986
Total liabilities and equity, $m
  21,459
  21,953
  22,517
  23,150
  23,851
  24,622
  25,461
  26,368
  27,346
  28,395
  29,518
  30,717
  31,991
  33,347
  34,786
  36,310
  37,924
  39,630
  41,434
  43,337
  45,346
  47,464
  49,697
  52,050
  54,528
  57,136
  59,883
  62,773
  65,813
  69,011
Debt-to-equity ratio
  0.710
  0.720
  0.730
  0.750
  0.760
  0.770
  0.790
  0.800
  0.820
  0.830
  0.850
  0.860
  0.880
  0.890
  0.910
  0.920
  0.930
  0.950
  0.960
  0.970
  0.980
  0.990
  1.000
  1.010
  1.020
  1.030
  1.040
  1.050
  1.060
  1.070
Adjusted equity ratio
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449
  0.449

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -2,898
  -2,969
  -3,050
  -3,142
  -3,243
  -3,355
  -3,477
  -3,609
  -3,751
  -3,904
  -4,057
  -4,232
  -4,418
  -4,616
  -4,826
  -5,048
  -5,284
  -5,533
  -5,797
  -6,075
  -6,369
  -6,678
  -7,005
  -7,349
  -7,711
  -8,093
  -8,494
  -8,917
  -9,362
  -9,829
Depreciation, amort., depletion, $m
  1,937
  1,981
  2,032
  2,089
  2,152
  2,221
  2,296
  2,377
  2,465
  2,559
  2,649
  2,757
  2,871
  2,993
  3,122
  3,259
  3,403
  3,557
  3,718
  3,889
  4,069
  4,260
  4,460
  4,671
  4,893
  5,128
  5,374
  5,633
  5,906
  6,193
Funds from operations, $m
  -961
  -988
  -1,018
  -1,053
  -1,092
  -1,134
  -1,181
  -1,231
  -1,286
  -1,345
  -1,408
  -1,475
  -1,547
  -1,623
  -1,704
  -1,790
  -1,881
  -1,977
  -2,078
  -2,186
  -2,299
  -2,419
  -2,545
  -2,678
  -2,818
  -2,965
  -3,120
  -3,284
  -3,455
  -3,636
Change in working capital, $m
  -14
  -16
  -19
  -21
  -23
  -25
  -28
  -30
  -32
  -35
  -37
  -39
  -42
  -45
  -47
  -50
  -53
  -56
  -59
  -63
  -66
  -70
  -74
  -78
  -82
  -86
  -90
  -95
  -100
  -105
Cash from operations, $m
  -947
  -972
  -1,000
  -1,032
  -1,069
  -1,109
  -1,153
  -1,202
  -1,254
  -1,310
  -1,371
  -1,436
  -1,505
  -1,578
  -1,656
  -1,739
  -1,827
  -1,921
  -2,019
  -2,123
  -2,233
  -2,349
  -2,471
  -2,600
  -2,736
  -2,879
  -3,030
  -3,188
  -3,355
  -3,531
Maintenance CAPEX, $m
  -1,888
  -1,926
  -1,970
  -2,021
  -2,078
  -2,141
  -2,210
  -2,285
  -2,366
  -2,454
  -2,548
  -2,649
  -2,757
  -2,871
  -2,993
  -3,122
  -3,259
  -3,403
  -3,557
  -3,718
  -3,889
  -4,069
  -4,260
  -4,460
  -4,671
  -4,893
  -5,128
  -5,374
  -5,633
  -5,906
New CAPEX, $m
  -364
  -430
  -491
  -551
  -611
  -670
  -730
  -790
  -851
  -914
  -977
  -1,043
  -1,110
  -1,180
  -1,252
  -1,327
  -1,405
  -1,485
  -1,570
  -1,657
  -1,749
  -1,844
  -1,944
  -2,048
  -2,157
  -2,271
  -2,390
  -2,515
  -2,646
  -2,784
Cash from investing activities, $m
  -2,252
  -2,356
  -2,461
  -2,572
  -2,689
  -2,811
  -2,940
  -3,075
  -3,217
  -3,368
  -3,525
  -3,692
  -3,867
  -4,051
  -4,245
  -4,449
  -4,664
  -4,888
  -5,127
  -5,375
  -5,638
  -5,913
  -6,204
  -6,508
  -6,828
  -7,164
  -7,518
  -7,889
  -8,279
  -8,690
Free cash flow, $m
  -3,200
  -3,327
  -3,461
  -3,604
  -3,757
  -3,920
  -4,093
  -4,277
  -4,471
  -4,678
  -4,896
  -5,127
  -5,372
  -5,629
  -5,901
  -6,188
  -6,491
  -6,809
  -7,145
  -7,499
  -7,871
  -8,263
  -8,675
  -9,108
  -9,564
  -10,044
  -10,548
  -11,078
  -11,635
  -12,221
Issuance/(repayment) of debt, $m
  240
  272
  311
  349
  387
  424
  462
  500
  539
  578
  619
  660
  703
  747
  793
  840
  889
  940
  993
  1,049
  1,107
  1,167
  1,230
  1,296
  1,365
  1,438
  1,513
  1,592
  1,675
  1,762
Issuance/(repurchase) of shares, $m
  3,107
  3,190
  3,303
  3,426
  3,558
  3,701
  3,853
  4,016
  4,190
  4,375
  4,561
  4,769
  4,990
  5,224
  5,471
  5,733
  6,009
  6,300
  6,606
  6,930
  7,271
  7,630
  8,007
  8,405
  8,824
  9,264
  9,727
  10,214
  10,727
  11,265
Cash from financing (excl. dividends), $m  
  3,347
  3,462
  3,614
  3,775
  3,945
  4,125
  4,315
  4,516
  4,729
  4,953
  5,180
  5,429
  5,693
  5,971
  6,264
  6,573
  6,898
  7,240
  7,599
  7,979
  8,378
  8,797
  9,237
  9,701
  10,189
  10,702
  11,240
  11,806
  12,402
  13,027
Total cash flow (excl. dividends), $m
  147
  135
  153
  171
  188
  205
  222
  240
  258
  276
  283
  302
  322
  342
  363
  384
  407
  430
  455
  480
  507
  534
  563
  593
  625
  658
  693
  729
  767
  806
Retained Cash Flow (-), $m
  -3,107
  -3,190
  -3,303
  -3,426
  -3,558
  -3,701
  -3,853
  -4,016
  -4,190
  -4,375
  -4,561
  -4,769
  -4,990
  -5,224
  -5,471
  -5,733
  -6,009
  -6,300
  -6,606
  -6,930
  -7,271
  -7,630
  -8,007
  -8,405
  -8,824
  -9,264
  -9,727
  -10,214
  -10,727
  -11,265
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -2,960
  -3,055
  -3,150
  -3,255
  -3,370
  -3,496
  -3,631
  -3,776
  -3,933
  -4,100
  -4,278
  -4,467
  -4,669
  -4,882
  -5,109
  -5,348
  -5,602
  -5,869
  -6,152
  -6,450
  -6,764
  -7,095
  -7,444
  -7,812
  -8,199
  -8,606
  -9,035
  -9,486
  -9,960
  -10,459
Discount rate, %
  5.40
  5.67
  5.95
  6.25
  6.56
  6.89
  7.24
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.18
  10.69
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.04
  15.80
  16.59
  17.42
  18.29
  19.20
  20.16
  21.17
  22.23
PV of cash for distribution, $m
  -2,808
  -2,736
  -2,648
  -2,554
  -2,453
  -2,343
  -2,226
  -2,102
  -1,971
  -1,834
  -1,692
  -1,548
  -1,402
  -1,256
  -1,113
  -975
  -843
  -718
  -604
  -499
  -406
  -325
  -255
  -196
  -148
  -109
  -79
  -55
  -38
  -25
Current shareholders' claim on cash, %
  78.0
  60.7
  47.2
  36.6
  28.3
  21.8
  16.8
  12.9
  9.9
  7.6
  5.8
  4.4
  3.4
  2.6
  2.0
  1.5
  1.1
  0.9
  0.7
  0.5
  0.4
  0.3
  0.2
  0.2
  0.1
  0.1
  0.1
  0.1
  0.0
  0.0

Noble Energy, Inc. is an independent energy company. The Company is engaged in crude oil, natural gas and natural gas and natural gas liquids (NGLs) exploration, development, production and acquisition. The Company's segments include: United States, including the onshore DJ Basin, Permian Basin, Eagle Ford Shale, Marcellus Shale and offshore deepwater Gulf of Mexico, as well as the consolidated accounts of Noble Midstream Partners LP (Noble Midstream Partners); Eastern Mediterranean, including offshore Israel and Cyprus; West Africa, including offshore Equatorial Guinea, Cameroon and Gabon, and Other International and Corporate, including new ventures, such as offshore the Falkland Islands, Suriname and Newfoundland. The Company's portfolio of assets is diversified through the United States and international projects and production mix among crude oil, natural gas and NGLs. Its business focuses on both the United States unconventional basins and certain global conventional basins.

FINANCIAL RATIOS  of  Noble Energy Inc. (NBL)

Valuation Ratios
P/E Ratio -9.8
Price to Sales 2.8
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 7.2
Price to Free Cash Flow -51.5
Growth Rates
Sales Growth Rate 9.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -48.3%
Cap. Spend. - 3 Yr. Gr. Rate -17.1%
Financial Strength
Quick Ratio 19
Current Ratio 0
LT Debt to Equity 75.5%
Total Debt to Equity 76.2%
Interest Coverage -4
Management Effectiveness
Return On Assets -3.6%
Ret/ On Assets - 3 Yr. Avg. -2.1%
Return On Total Capital -5.7%
Ret/ On T. Cap. - 3 Yr. Avg. -3.9%
Return On Equity -10.2%
Return On Equity - 3 Yr. Avg. -7.1%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 86.7%
Gross Margin - 3 Yr. Avg. 91.5%
EBITDA Margin 28.9%
EBITDA Margin - 3 Yr. Avg. 35.3%
Operating Margin -37.1%
Oper. Margin - 3 Yr. Avg. -32.3%
Pre-Tax Margin -50.8%
Pre-Tax Margin - 3 Yr. Avg. -29%
Net Profit Margin -28.6%
Net Profit Margin - 3 Yr. Avg. -27.2%
Effective Tax Rate 44.4%
Eff/ Tax Rate - 3 Yr. Avg. 21.1%
Payout Ratio -17.2%

NBL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NBL stock intrinsic value calculation we used $4986 million for the last fiscal year's total revenue generated by Noble Energy Inc.. The default revenue input number comes from 0001 income statement of Noble Energy Inc.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NBL stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.4%, whose default value for NBL is calculated based on our internal credit rating of Noble Energy Inc., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Noble Energy Inc..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NBL stock the variable cost ratio is equal to 150%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NBL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Noble Energy Inc..

Corporate tax rate of 27% is the nominal tax rate for Noble Energy Inc.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NBL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NBL are equal to 367.3%.

Life of production assets of 9.7 years is the average useful life of capital assets used in Noble Energy Inc. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NBL is equal to -13.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $9426 million for Noble Energy Inc. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 483.550 million for Noble Energy Inc. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Noble Energy Inc. at the current share price and the inputted number of shares is $11.0 billion.

RELATED COMPANIES Price Int.Val. Rating
CNX CNX Resources 7.40 4.32  str.sell
PDCE PDC Energy, In 30.55 9.55  str.sell
MRO Marathon Oil C 13.92 64.13  str.buy
COG Cabot Oil & Ga 24.00 1.23  str.sell

CONTACT US      

About X-FIN       Privacy policy       Terms of use      

Copyright © X-FIN.com 2005-2019. All rigths reserved.